What auditors of brokers and dealers need to know about audit planning

A CAQ alert discusses challenging areas.

Auditors of brokers and dealers have a lot to consider as they plan their audit and attestation engagements.

Risk assessment procedures, auditor communication requirements, and revenue recognition are among the many complex areas that auditors need to consider carefully in their planning and throughout the audit.

A Center for Audit Quality (CAQ) alert, Audit Planning Alert for Auditors of Brokers and Dealers, covers these topics in detail as well as:

  • Related-party transactions.
  • Auditing information produced by a service organization.
  • Supplemental information accompanying the financial statements.
  • Examination engagements.
  • Review engagements.
  • Additional considerations such as independence, engagement quality reviews, and financial statement presentation and disclosure.

The alert presents questions for auditors of brokers and dealers to consider in all these areas as they plan their audit and attestation engagements. Although the questions do not represent definitive guidance and are not all-inclusive, they may be useful for auditors of brokers and dealers in their planning.

The CAQ is affiliated with the AICPA.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

QUIZ

News quiz: Senate health care bill in the spotlight

Reports related to the Republican bill to repeal many provisions of the PPACA, other tax issues, and the giant AICPA ENGAGE Conference offered a diverse reading list for June. See how much you know about recent news with this short quiz.